S.F. 483 Section 1. Section 422.7, Code 2015, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 51. a. A taxpayer taking a depreciation 3 allowance under section 168 of the Internal Revenue Code for 4 property described in section 422.11G is not allowed to take 5 the allowance for purposes of this division to the extent that 6 a tax credit is taken for the purchase and installation of 7 the property under section 422.11G. If a credit is taken for 8 the purchase and installation of the property under section 9 422.11G, the taxpayer shall add the amount of the allowance 10 taken on such property to the extent of the amount of the 11 credit. 12 b. A taxpayer taking an expensing allowance under section 13 179 of the Internal Revenue Code for property described in 14 section 422.11G is not allowed to take the allowance for 15 purposes of this division to the extent that a tax credit 16 is taken for the purchase and installation of such property 17 under section 422.11G. If a credit is taken for the purchase 18 and installation of the property under section 422.11G, the 19 taxpayer shall add the amount of the allowance taken on such 20 property to the extent of the amount of the credit. 21 c. This subsection is repealed on January 1, 2023. 22 Sec. 2. NEW SECTION . 422.11G Electric or natural gas 23 vehicle facility tax credit. 24 1. As used in this section, “motor vehicle” means the same 25 as defined in section 322.2. 26 2. The taxes imposed under this division, less the credits 27 allowed under section 422.12, shall be reduced by an electric 28 or natural gas vehicle facility tax credit. In order to be 29 eligible to claim the tax credit, the taxpayer must comply with 30 this section and rules adopted by the director pursuant to 31 chapter 17A necessary to administer and enforce this section. 32 3. a. The taxpayer claiming the tax credit on an 33 agricultural basis as provided in subsection 9 must purchase 34 and install any of the following: 35 -1- LSB 1380SV (4) 86 da/sc 1/ 8

S.F. 483 (1) An electric vehicle facility that serves a motor vehicle 1 designed by a manufacturer to operate using electricity. 2 (2) A natural gas vehicle facility that serves a motor 3 vehicle that is any of the following: 4 (a) Designed by the manufacturer to operate using 5 compressed natural gas. 6 (b) Converted as an aftermarket alternative fuel vehicle 7 to operate using compressed natural gas if the conversion 8 equipment is certified by the United States environmental 9 protection agency, including as provided in 40 C.F.R. pt. 85. 10 b. The taxpayer claiming the tax credit on a commercial 11 basis as provided in subsection 9 must purchase and install any 12 of the following: 13 (1) An electric vehicle facility that serves a motor vehicle 14 designed by a manufacturer to operate using electricity. 15 (2) A natural gas vehicle facility that serves a motor 16 vehicle that is any of the following: 17 (a) Designed by the manufacturer to operate using 18 compressed natural gas. 19 (b) Converted as an aftermarket alternative fuel vehicle 20 to operate using compressed natural gas if the conversion 21 equipment is certified by the United States environmental 22 protection agency, including as provided in 40 C.F.R. pt. 85. 23 c. The taxpayer claiming the tax credit on a residential 24 basis as provided in subsection 9 must purchase and install an 25 electric vehicle facility that serves a motor vehicle designed 26 by a manufacturer to operate using electricity. 27 4. a. After verifying the eligibility for an electric or 28 natural gas vehicle facility tax credit as provided in this 29 section, the department of revenue shall issue the taxpayer an 30 electric or natural gas vehicle facility tax credit certificate 31 which must be attached to the taxpayer’s tax return. An 32 electric or natural gas vehicle facility tax credit certificate 33 shall include all of the following: 34 (1) The taxpayer’s name, address, tax identification 35 -2- LSB 1380SV (4) 86 da/sc 2/ 8

S.F. 483 number, and any other information required by the department 1 of revenue. 2 (2) A description of the infrastructure, equipment, or 3 machinery being purchased and installed which is eligible for 4 the tax credit to be claimed on the taxpayer’s tax return. 5 (3) The amount of the tax credit being claimed. 6 (4) The date that the electric or natural gas vehicle 7 facility was placed in service. 8 b. The director shall adopt rules establishing criteria 9 for the receipt of applications for electric or natural gas 10 vehicle facility tax credit certificates and the issuance of 11 those certificates. A tax credit certificate shall be issued 12 in the taxpayer’s name and shall expire on or after the last 13 day of the taxable year for which the taxpayer is claiming the 14 tax credit. A tax credit certificate is nontransferable. 15 5. The aggregate amount of electric or natural gas vehicle 16 facility tax credit certificates that may be issued pursuant 17 to this section shall not exceed five million dollars for all 18 tax years that the tax credit is available under this section. 19 The department shall issue the tax credit certificates on a 20 first-come, first-served basis to qualified applicants as 21 follows: 22 a. Two million dollars for electric vehicle facilities. 23 b. Two million dollars for natural gas vehicle facilities. 24 (1) Except as provided in subparagraph (2), a person is not 25 entitled to apply for tax credit certificates for all natural 26 gas vehicle facilities equal to more than two hundred thousand 27 dollars. 28 (2) A person is not entitled to apply for tax credit 29 certificates equal to more than four hundred thousand dollars 30 for all natural gas vehicle facilities that are part of a 31 business or businesses selling compressed natural gas on a 32 retail basis. A person is not eligible to apply for a tax 33 credit under both this subparagraph and subparagraph (1). 34 c. One million dollars for either electric vehicle 35 -3- LSB 1380SV (4) 86 da/sc 3/ 8

S.F. 483 facilities as provided in paragraph “a” or natural gas vehicle 1 facilities as provided in paragraph “b” . 2 d. Of the aggregate amount of the tax credit unobligated 3 or unexpended on July 1, 2017, for either electric vehicle 4 facilities as provided in paragraph “a” or natural gas vehicle 5 facilities as provided in paragraph “b” . However, paragraph 6 “b” , subparagraph (2), is not applicable to natural gas vehicle 7 facilities receiving a tax credit certificate under this 8 paragraph “d” . 9 6. An electric or natural gas vehicle facility is limited 10 to infrastructure, equipment, or machinery used to store, 11 dispense, dry, and meter electricity or compressed natural 12 gas. For electricity, it may include charging equipment, 13 infrastructure, or batteries. For compressed natural gas, it 14 may include pipes, compressors, dryers, or vaporizers. 15 7. The amount of the electric or natural gas vehicle 16 facility tax credit equals thirty percent of the total cost to 17 the taxpayer of purchasing the infrastructure, equipment, or 18 machinery and thirty percent of the total cost to the taxpayer 19 of installing the infrastructure, equipment, or machinery. 20 8. The electric or natural gas vehicle facility must comply 21 with any applicable federal and state standards and the latest 22 applicable and available ASTM international specifications. 23 9. The electric or natural gas vehicle facility tax credit 24 may be claimed by a person on an agricultural, commercial, or 25 residential basis as follows: 26 a. A person may claim the tax credit on an agricultural 27 basis if the electric or natural gas vehicle facility is 28 located on land primarily used in the production of a crop as 29 defined in section 202.1 or livestock as defined in section 30 717.1. The electric or natural gas vehicle facility must be 31 used by an agricultural producer as defined in section 15E.202 32 or a person under the management of the agricultural producer. 33 The tax credit must be taken in equal installments in three 34 consecutive tax years, beginning with the tax year in which the 35 -4- LSB 1380SV (4) 86 da/sc 4/ 8

S.F. 483 electric or natural gas vehicle facility is placed in service. 1 If any part of the electric or natural gas vehicle facility 2 is taken out of service and not immediately replaced and the 3 facility placed back in service, the tax credit expires and 4 the taxpayer cannot take any remaining installment of the tax 5 credit. 6 b. A person may claim the tax credit on a commercial basis 7 if the electric or natural gas vehicle facility is part of a 8 business selling electricity or compressed natural gas on a 9 retail basis, or may claim the tax credit if the electric or 10 natural gas vehicle facility is used by a business for its own 11 vehicle fleet or employees. The tax credit must be taken in 12 equal installments in three consecutive tax years, beginning 13 with the tax year in which the electric or natural gas vehicle 14 facility is placed in service. If any part of the electric 15 or natural gas vehicle facility is taken out of service and 16 not immediately replaced and the facility placed back in 17 service, the tax credit expires and the taxpayer cannot take 18 any remaining installment of the tax credit. 19 c. A person may claim the tax credit on a residential basis 20 only for an electric vehicle facility that is for personal, 21 family, or household use. The entire amount of the tax credit 22 must be claimed in the tax year in which the electric vehicle 23 facility is first placed in service. 24 10. Any tax credit in excess of the taxpayer’s tax liability 25 shall be refunded. In lieu of claiming a refund, the taxpayer 26 may elect to have the overpayment shown on the taxpayer’s 27 final, completed return credited to the tax liability for the 28 following tax year. 29 11. An individual may claim the tax credit allowed a 30 partnership, limited liability company, S corporation, estate, 31 or trust electing to have the income taxed directly to the 32 individual. The amount claimed by the individual shall be 33 based upon the pro rata share of the individual’s earnings of 34 the partnership, limited liability company, S corporation, 35 -5- LSB 1380SV (4) 86 da/sc 5/ 8

S.F. 483 estate, or trust. 1 12. A person shall not claim a tax credit under this section 2 for an electric or natural gas vehicle facility that was placed 3 in service on or after January 1, 2018. However, a person 4 claiming the tax credit on an agricultural or commercial basis 5 who placed the electric or natural gas vehicle facility in 6 service prior to January 1, 2018, may continue to claim the tax 7 credit for tax years ending on or after January 1, 2018, as 8 provided in subsection 9. 9 13. This section is repealed on January 1, 2023. 10 Sec. 3. Section 422.33, Code 2015, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 11. The taxes imposed under this division 13 shall be reduced by an electric or natural gas vehicle facility 14 tax credit for each tax year that the taxpayer is eligible to 15 claim the tax credit under this subsection. 16 a. The taxpayer must claim the tax credit on an agricultural 17 or commercial basis in the same manner as provided in section 18 422.11G. The taxpayer must claim the tax credit according 19 to the same requirements, for the same amount, and for the 20 same period as provided in section 422.11G. The amount of the 21 tax credit shall be calculated in the same manner as provided 22 in section 422.11G. A taxpayer claiming a tax credit on an 23 agricultural or commercial basis is subject to the same penalty 24 for taking the electric or natural gas vehicle facility out of 25 service as provided in section 422.11G. 26 b. This subsection is repealed on January 1, 2023. 27 Sec. 4. Section 422.35, Code 2015, is amended by adding the 28 following new subsection: 29 NEW SUBSECTION . 15. a. A taxpayer taking a depreciation 30 allowance under section 168 of the Internal Revenue Code for 31 property described in section 422.33, subsection 11, is not 32 allowed to take the allowance for purposes of this division 33 to the extent that a tax credit is taken for the purchase and 34 installation of the property under section 422.33, subsection 35 -6- LSB 1380SV (4) 86 da/sc 6/ 8

S.F. 483 11. If a credit is taken for the purchase and installation of 1 the property under section 422.33, subsection 11, the taxpayer 2 shall add the amount of the allowance taken on such property to 3 the extent of the amount of the credit. 4 b. A taxpayer taking an expensing allowance under section 5 179 of the Internal Revenue Code for property described in 6 section 422.33, subsection 11, is not allowed to take the 7 allowance for purposes of this division to the extent that a 8 tax credit is taken for the purchase and installation of such 9 property under section 422.33, subsection 11. If a credit 10 is taken for the purchase and installation of the property 11 under section 422.33, subsection 11, the taxpayer shall add the 12 amount of the allowance taken on such property to the extent of 13 the amount of the credit. 14 c. This subsection is repealed on January 1, 2023. 15 Sec. 5. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 16 immediate importance, takes effect upon enactment. 17 Sec. 6. RETROACTIVE APPLICABILITY. This Act applies 18 retroactively to January 1, 2015, for tax years beginning on 19 or after that date. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill creates an electric or natural gas vehicle 24 facility tax credit for persons who purchase and install an 25 electric vehicle facility or a natural gas vehicle facility. 26 The amount of the tax credit is 30 percent of the cost of 27 purchasing and 30 percent of the cost of installing the 28 facility. A person may claim the tax credit on an agricultural 29 (farmer), commercial (business), or residential (personal, 30 family, or household) basis. The bill provides that $5 million 31 is dedicated for the issuance of tax credit certificates 32 which must be attached to a person’s tax return in order to 33 claim the tax credit. A person claiming the tax credit on 34 an agricultural or commercial basis may claim the tax credit 35 -7- LSB 1380SV (4) 86 da/sc 7/ 8

S.F. 483 for an electric or natural gas facility. The person must 1 claim one-third of the tax credit for each of three tax years 2 beginning in the tax year that the facility was placed in 3 service. A person claiming the tax credit on a residential 4 basis may claim the tax credit for only the electric vehicle 5 facility. The person must claim the tax credit in the tax year 6 in which the electric vehicle facility was placed in service. 7 Any tax credit in excess of the taxpayer’s tax liability is 8 refundable or may be credited to the tax liability for the 9 following tax year. 10 The taxpayer must place the facility in service before 11 January 1, 2018, but those taxpayers claiming on an 12 agricultural or commercial basis may continue to claim the tax 13 credit after that date for purposes of meeting the requirement 14 that one-third of the credit be taken each year for three years 15 and the authorization to carry forward the excess for one year. 16 The aggregate amount of electric or natural gas vehicle 17 facility tax credit certificates that may be issued cannot 18 exceed $5 million for all tax years that the tax credit is 19 available. Two million dollars is allocated to electric 20 vehicle facilities, $2 million is allocated to natural gas 21 facilities, and $1 million is allocated to either electric 22 vehicle facilities or natural gas vehicle facilities. As of 23 July 1, 2017, any remaining unobligated or unexpended moneys 24 are allocated to either type of facility. 25 The tax credit applies retroactively to tax years beginning 26 on and after January 1, 2015. The bill’s provisions are 27 repealed on January 1, 2023. The bill takes effect upon 28 enactment. 29 -8- LSB 1380SV (4) 86 da/sc 8/ 8